According to several financial media outlets, Eddie Bauer may be headed to a liquidation sale. Reports state that Monarch Alternative Capital and Anchorage Advisors, the two lenders that control Eddie Bauer's $200 million in debt, may bring in Hilco Consumer Capital and Gordon Brothers to create a bid that would liquidate Eddie Bauer's stores.


This speculation is based on the fact that Hilco Consumer Capital and Gordon Brothers have collectively purchased and liquidated bankrupt brands including Polaroid, Ellen Tracy, Linens 'n Things and Sharper Image.


The auction is scheduled to be held on July 16. All bidders will have to top a $202 million stalking-horse bid by CCMP Capital.


VF Corp, the parent of The North Face and Vans, may be a possible bidder in the bankruptcy auction for the assets of Eddie Bauer Holdings Inc. VF asked the U.S. Bankruptcy Court in Delaware to send it all notices in the case, saying it is a “party in interest,” according to court documents filed on Monday.

Eddie Bauer, which filed for Chapter 11 protection last month, has about 370 stores in North America. VF's “party of interest” status does not necessarily mean it plans to bid but it may just want to be appraised of the bankruptcy's status.

On Monday, Bloomberg News reported that Iconix Brand Group Inc.as well as Golden Gate Capital, a private equity group, might also bid on the company, citing sources with knowledge of the proceedings.

Eddie Bauer said in June it would seek court approval to sell its assets to private equity firm CCMP Capital for $202 million. CCMP is the “stalking horse” bidder for the bankruptcy auction. A stalking horse submits a starting bid to set a floor under other possible offers in exchange for certain protections that often include break-up fees.

VF's brands include The North Face, Vans, Reef, Jansport, Eastpak, Wrangler, Lee, Riders, Majestic Athletic, Napapijri, Nautica, Kipling, John Varvatos, 7 For All Mankind and lucy.